Ita/21/2008 Of The Commissioner Of Income Tax v. M/S Steer Engineering (P) Ltd

IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 28 DAY OF AUGUST, 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR I.T.A. No. 21 OF 2008 BETWEEN:- 1.The Commissioner of Income Tax,C.R. Building,Queens Road,Bangalore. 2.The Asst. Commissioner of Income Tax,Circle 12(2),C.R. Building,Queens Road,Bangalore. (By Sri K.V. Aravind, Advocate) Appellants AND:- M/s. Steer Engineering (P) Ltd.,290, 4[th] Main, 4[th] Phase,Peenya Industrial Area,Bangalore – 560 058. (By M/s. King and Partridge, Advocates) Respondent This I.T.A. is filed U/s.260-A of the I.T. Act, 1961arising out of Order dated 03.08.2007 passed in ITA No.273/BANG/2006, for the Assessment Year 2003-04,praying that this Hon’ble Court may be pleased to:(i) formulate the substantial questions of law stated thereinand (ii) allow the appeal and set aside the order passed bythe ITAT Bangalore in ITA No.273/BANG/2006, dated03.08.2007 confirming the order of the AppellateCommissioner and confirm the order passed by the Asst.Commissioner of Income Tax, Circle-12(2), Bangalore in theinterest of justice and equity. This appeal is coming on for final hearing this day,SREEDHAR RAO, J., delivered the following: J U D G M E N T In ITA No.52/09 and in ITA No.903/07 has held thatU/s.80(h)(h)(C) 90% of the labour charges have to bededucted and the said deductions should be on the net andnot the gross. The questions involved in this appeal is alsothe same. In that view, in view of the decision referred toabove, this appeal is disposed of. The assessee is entitled todeduction of 90% towards the labour charges on the netincome and not on the gross income. psg* Sd/-JUDGESd/-JUDGE